Distinction Between Private And Public Companies - SS1 Economics Lesson Note
Private and public companies are two different types of businesses with unique characteristics. Here's a simple differentiation:
Private Companies:
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Owned by a small group of individuals or a single person
Not publicly traded
Financial information is kept confidential
More flexible management structure
Public Companies:
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Owned by the general public through shares of stocks
Publicly traded on stock exchanges
Required to disclose financial information to the public
More complex management structure due to regulatory requirements